Energy
$900bn Needed to Fix Energy Sector – President Jonathan
…FG sets up power intervention funds with N300bn as seed capital
… Local banks’ commitment to power sector hits N750bn
ABUJA – President Goodluck Jonathan Monday said Nigeria would need about $900 billion to properly address its energy sector in the next 30 years.
Jonathan, who was represented by Vice-President Namadi Sambo at the Nigeria power financing conference in Abuja, added that the largest chunk of the funds would have to come from the private sector.
According to him, in the power sector alone, $10 billion is needed for generation and distribution to add 5,000 megawatts to the national grid.
He reiterated his confidence in the ability of the global community of private and institutional financiers to meet up with its request for improved investment in Nigeria’s infrastructure expansion.
The president explained that the federal government had long realised its challenges to sustainably fund critical national infrastructure projects, hence its continued discussion with the private sector to address the situation.
Jonathan also disclosed that the government had set up an intervention fund to further support the growth of the power sector with about N300 billion initial deposit.
He however stated that the total size of the fund, which would be contributed in partnership with Development Financial Institutions (DFIs), was being worked on.
President Jonathan expressed his conviction in the ability of private and institutional financiers to extensively participate in the next phase of Nigeria’s power sector reform programme, with investments in gas-to-power initiatives, renewable energy sources as well as on-grid electricity generation, transmission and distribution projects.
“Under our national integrated national infrastructure master plan, we need a total of $2.9 trillion for our infrastructure development efforts in the next 30 years. The energy sector alone needs an infusion of about $900 billion during the period.
“Of this, a significant percentage is expected to come from the private sector. The power sector alone needs about $10 billion for CAPEX (capital expenditure) of generation and distribution companies in the next few years to enable us add additional 5,000 megawatts.
“Similarly, our transmission network continues to attract serious attention. The transmission grid requires an annual investment of about $1.5 billion for the next five years to ensure its reliability and stability. The Transmission Company of Nigeria (TCN) has commenced the aggressive implementation of the expansion blueprint funded by a mix of appropriation and funds from financial and multilateral institutions,” he explained.
The president further said: “It is the belief of this government that the private sector is suitable to effectively manage and attract the huge capital required for constant and affordable power to all Nigerians.
“This confidence on the Nigerian private sector stems from a track record of resilience, vibrancy, foresight and courage. In virtually all sectors of our national economy, this great show of enterprise, creativity and patriotism by our business community has kept our national economy strong, versatile and forward looking.
“When we started our divestment programme in the power sector and their foreign partners, there was a lot of pessimism. However, it was the dynamism of the Nigerian private sector that ensured the raising of over $2.5 billion that ensured the successful conclusion of the process.
“It is on this account that this government has continued to work with the private sector as the drivers of economic growth and national development. Beyond the incentives amply stated, we will continue to fine tune and improve the enabling environment for economic activity and social development.”
On the new contributory intervention funding, Jonathan said: “It is obvious that government alone cannot fund the infrastructural deficit in Nigeria, especially given the trend in the global economy.
“This conference therefore comes at an appropriate time given the opportunities in Nigeria. Nigeria has become an obvious destination of priority for Foreign Direct Investment (FDI).
“To enable industry players have access to cheap, long term funds, government is hereby setting up a ‘Power Sector Intervention Fund’. The financial resources for this special fund will be pooled from the federal government, Development Financial Institutions (DFIs) as well as local and global financial partners.
“The Coordinating Minister of Economy will give details of the operational structure of the bond. But, it will essentially provide avoidable refinancing and unending services to the sector. On its part, the federal government will make initial deposit of N300 billion and I call on all participants to join hand towards the success of this endeavour.”
Meanwhile, the Managing Director of Diamond Bank Plc, Dr Alex Otti, said as at December 2013, Nigerian banks had committed a total of N750 billion to support the power sector reforms.
Otti, who spoke on behalf of other local participating financial institutions in the Nigerian Electricity Supply Industry (NESI), reiterated that the banks would improve on their financial support to the sector for as long as the government is committed to transparent processes in the sector.
– THIS DAY
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that crude oil imports by domestic refineries rose by 151.5 percent to 5.13 million barrels in July 2026, from 2.04 million barrels in June.
In a related development, domestic crude supply to refineries fell sharply during the month.
According to the NMDPRA’s July 2026 Midstream and Downstream Statistics, local refineries received a total of 17.88 million barrels of crude in July, comprising 12.75 million barrels supplied domestically and 5.13 million barrels imported.
Imported crude therefore accounted for 28.7 percent of total crude receipts by domestic refineries in July, while domestic supplies contributed the remaining 71.3 percent.
The 5.13 million barrels imported in July represented a significant rebound from the 2.04 million barrels recorded in June. It was also higher than the 2.08 million barrels imported in May and 0.41 million barrels in April.
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However, July’s import volume remained below the 9.43 million barrels recorded in March, the highest monthly volume so far in 2026.
The data showed that crude imports stood at 0.71 million barrels in January before rising to 4.25 million barrels in February and peaking at 9.43 million barrels in March.
Imports subsequently plunged to 0.41 million barrels in April, before recovering to 2.08 million barrels in May, 2.04 million barrels in June and 5.13 million barrels in July.
The report also disclosed that domestic crude supply to refineries declined by 25.4 percent month-on-month, falling from 17.08 million barrels in June to 12.75 million barrels in July.
In January, domestic refineries received 8.83 million barrels of domestic crude and 0.71 million barrels of imported crude, bringing total receipts to 9.54 million barrels.
The figure rose to 13.13 million barrels in February, comprising 8.88 million barrels of domestic crude and 4.25 million barrels of imports.
March recorded the highest total crude receipts at 20.92 million barrels, with domestic supply contributing 11.49 million barrels and imports 9.43 million barrels.
Total receipts stood at 18.37 million barrels in April, made up of 17.96 million barrels of domestic crude and 0.41 million barrels of imports.
In May, refineries received 17.92 million barrels, comprising 15.84 million barrels of domestic crude and 2.08 million barrels of imports, while June recorded 19.12 million barrels, made up of 17.08 million barrels of domestic crude and 2.04 million barrels of imports.
Dangote Petroleum Refinery and Petrochemicals FZE has increased the gantry price of Premium Motor Spirit (petrol) from N1,185 to N1,200 per litre, effective August 26, 2026.
In an official communication to customers issued on Tuesday, the refinery’s Group Commercial Operations announced revised depot prices for gantry and coastal deliveries.
The email, titled ‘PMS Price Change Communication (N1,185 per Litre To N1,200 Per Litre)’, asked customers to take note of the revised DPRP PMS gantry and coastal price, which is effective 26th August 2026.
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According to the table contained in the notice, the coastal price rose from N1,562,265 per metric tonne to N1,582,380, while the gantry price increased from N1,185 to N1,200 per litre.
The refinery further directed customers to return all Authorisation to Collect documents for repricing, adding that a new volume contract would be issued for immediate loading resumption.
“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption. Should you require any further clarification, please do not hesitate to contact us,” the notice said.
The latest adjustment represents a N15 per litre increase in the gantry price and comes barely days after the refinery raised the price from N1,165 to N1,185 per litre. The previous increase took effect from midnight on August 21, 2026, according to industry trackers.
However, the latest hike comes against a backdrop of falling international crude oil prices. Data from oilprice.com on Tuesday showed West Texas Intermediate crude trading at $82.13 per barrel, down $2.88 or 3.39 per cent, while Brent crude stood at $88.37 per barrel, declining by $3.80 or 4.12 per cent. Murban crude also fell to $92.71 per barrel, shedding $8.73 or 8.61 per cent.
Our correspondent gathered that marketers and depot operators who received the circular might have begun returning existing ATCs for repricing in line with the refinery’s directive.
The N15 increase could result in higher pump prices as oil marketers factor in transportation, landing and other downstream costs. Petrol is expected to return to an average of N1,250 per litre.
The Dangote Group has yet to respond to messages from our correspondent.
The price increase comes at a time of renewed volatility in the international oil market amid the ongoing US-Iran conflict. Reuters reported that oil prices fell as investors viewed the latest US sanctions against Iran as less threatening to global oil supplies than a military escalation. However, analysts warned that the decline could be an overreaction, noting that prices could rise sharply if Iran retaliates militarily.
Reuters also reported that supply disruption risks remained, with only two commodity vessels transiting the Strait of Hormuz on Monday, the lowest daily tally since early May. The waterway handled about one-fifth of global oil consumption before the conflict began, leaving the market vulnerable to further disruptions.
The 31 companies that emerged winners of 37 oil and gas blocks in the 2025 Licensing Round must pay their signature bonuses within the stipulated period or risk losing their provisional awards.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) handed down the warning on Sunday, one month after it hosted the commercial bid conference in Abuja, where the successful companies emerged as winners of the available blocks.
The NUPRC said the process of compliance with the payment of signature bonuses had commenced following the issuance of provisional awards to the successful bidders.
“Exactly a month ago, the NUPRC hosted the 2025 commercial bid conference in Abuja where 31 companies emerged winners of 37 oil and gas blocks. Having issued the winners with the provisional awards, compliance with the payment of signature bonuses has already begun.
“Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders,” the NUPRC stated.
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The 37 blocks offered in the licensing round comprise Petroleum Prospecting Licences covering the Niger Delta onshore, shallow water and deep offshore areas, as well as frontier basins.
Among the blocks are PPL 2A29 to PPL 2A62 in the Niger Delta, PPL 2010 in the deep offshore, PPL 308 in the Benin Basin, PPL 900 to PPL 903 in the Anambra Basin, PPL 700 in the Chad Basin and PPL 800 and PPL 801 in the Benue Trough.
The commission also published the names of the 31 successful companies and the ranked reserve bidders for each of the 37 blocks.
A total of 143 companies participated in the licensing round, submitting about 200 bids for the 37 blocks. However, 13 of the 50 blocks initially put up for bidding attracted no bids.
Under the Petroleum Industry Act (PIA) and the applicable licensing guidelines, successful bidders are required to pay signature bonuses ranging from $3m to $7m per block.
They are also expected to provide the required guarantees, pay first-year rents and satisfy other post-award conditions within the prescribed period. Failure to meet the requirements will result in the automatic transfer of the affected award to the next-ranked reserve bidder, according to the NUPRC.
The commission’s Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, had earlier urged the successful bidders to make the required payments without delay and commence development of the awarded assets.
The NUPRC urged interested members of the public and stakeholders to visit the 2025 Licensing Round portal for further information on the awards and compliance requirements.
Under the PIA 2021 guidelines, winning bidders are required to pay their signature bonuses within a strict 90-day window. Since provisional award letters were issued immediately following the commercial bid conference on July 21, 2026, it means 30 days have already elapsed, and companies have 60 days left to remit the funds.
This shows that the regulator expects the signature bonuses to be paid on or before October 19, 2026.
If a winning company fails to complete the payment of its statutory signature bonus along with first-year rent within this 90-day window, the company automatically forfeits its bid guarantee. The provisional award will be revoked and immediately reassigned to the designated reserve bidder for the asset.
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